We continually evaluate the overall cash and investing needs of the business and consider the best uses for our cash, including potential share repurchases.
While basic shares outstanding stayed essentially flat quarter-over-quarter, our diluted share count, which is used for our diluted EPS calculation, increased in the first quarter. The main driver of this increase was dilution from our convertible bonds. As in the first and second quarters of 2011, we see dilution from our convertible bonds when our average stock price for the quarter is over the current conversion price of $34.37. These shares represent diluted shares and not shares that have been issued. John will provide more details on the share count and its impact during his comments.
On March 27, ICANN posted for public comment on their website the renewal terms for the .com Registry Agreement negotiated between VeriSign and ICANN. The terms are substantially the same as the terms contained in the existing .com Registry Agreement, except for new provisions regarding indemnification and audit rights, aligning it with the other 5 largest gTLD registry agreements including the .net agreement. Regarding ICANN's new gTLD program, VeriSign applied directly for 14 new gTLDs, 12 of these 14 are transliterations of .com and .net.
Also, applicants for approximately 220 new gTLDs selected VeriSign to provide back-end registry services. It is still early in the process to determine what impact these applications will have on our revenue.Depending on ICANN's pace for processing and approving these applications, revenue from new gTLDs is not expected before 2013 and is not expected to be material in 2013. We expect more details will be available when ICANN posts information regarding the new gTLDs for which applications were received. We expect that announcement in May. Read the rest of this transcript for free on seekingalpha.com